Technology giant IBM has agreed to acquire Promontory Financial Group, a Washington-based risk management and regulatory compliance consulting firm, for an undisclosed sum.
The technology vendor said that it plans to launch a new unit, Watson Financial Services, combining the expertise of Promontory’s consultants and cognitive computing abilities of its own artificial intelligence computer system Watson, to advise clients on risk and compliance.
Promontory will operate as a wholly owned subsidiary of IBM, helping Watson perform tasks such as tracking changing regulations, financial risk modelling, surveillance, anti-money laundering and know-your-customer work.
Promontory founder and CEO Eugene Ludwig said: “Combining Promontory’s expertise with IBM’s extraordinary technological capabilities such as Watson will permit us to directly address our clients’ greatest challenges in innovative and powerful ways. It will enhance our mutual commitment to risk management and regulatory compliance excellence, and our results will benefit customers and the overall financial system.”
The deal is anticipated to be completed in late 2016, subject to regulatory review and customary closing conditions.
IBM Industry Platforms senior vice president Bridget van Kralingen said: “What Watson is doing to transform oncology by working with the world’s leading oncologists, we will now do for regulation, risk and compliance.
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“Promontory’s experts are unsurpassed in this field. They will teach Watson and Watson, in turn, will extend and enhance their expertise. This initial offering of Watson Financial Services is emblematic of the transformative cloud-based solutions that IBM Industry Platforms will bring to clients.”